As a presidential candidate, Obama has been critical of the
congressional system of doling out money for pet projects. But he is
no stranger to pork-barrel politics and the practice of spreading
government money around his district. In Springfield he once directed
state funds to a nonprofit group headed by a Republican and former
ballot foe, Yesse B. Yehudah.

Yehudah barely registered a ripple of meaningful opposition, drawing
only 10% of the vote in his 1998 challenge of Obama.

The following year, a nonprofit run by Yehudah, a social services
organization called Fulfilling Our Responsibility Unto Mankind, began
seeking state support. At the same time, Obama was considering
mounting an ambitious challenge to U.S. Rep. Bobby L. Rush, a fellow
Democrat.

Former foe Yehudah stepped up early to help. In November 1999, five
people who worked for the Republican's nonprofit organization each
gave $1,000 checks to Obama's congressional campaign committee.
Yehudah makes no secret of his goal.

"We want [politicians] to know that when we sit down, we're serious,"
Yehudah said. "They know it when a $1,000 check comes in."

Obama lost his congressional bid. President Clinton backed incumbent
Rush, who received twice as many primary votes as Obama. Obama was
left with a $40,000 debt.

Later that year, Yehudah associates pitched in an additional $5,000 to help retire Obama's debt. The contributions were recorded on Oct. 7, 2000, three days after the Illinois Senate, at Obama's behest, approved a $75,000 state grant to Yehudah's nonprofit, state records show.

In an interview, Yehudah said the commitment for the grant was secured
months earlier, in July. He called timing of the donations a coincidence.

The donations were modest by political standards, as was Obama's
relatively small assist to the nonprofit group of his ex-rival and new
benefactor. But in Illinois, "government actions often occur around
the time of campaign donations," said Stewart of the Better Government
Assn. "The answer is always the same: It's always a coincidence."

Obama spokesman Bill Burton said there was no connection between the campaign donations and the grant to Yehudah's organization. "Of course not," he said.

By 2002, Obama was preparing for his next challenge, a run for the
U.S. Senate. Also that year, the Illinois attorney general sued
Yehudah over allegations of kickbacks unrelated to the state grant. It
was settled out of court.

Three days after the suit was filed, Obama returned one batch of
donations totaling $5,000.